Kraft Heinz is utilizing its AI-powered software, Lighthouse, to anticipate and adjust to shifts in demand, aiming to create a fully autonomous supply chain.
Kraft Heinz’s AI-Powered Supply Chain
Kraft Heinz, a major player in the food supply industry, is making strides in the use of artificial intelligence (AI) to enhance its supply chain decisions. The company’s proprietary software, Lighthouse, is at the forefront of this initiative, helping to predict and adapt to changes in demand.
Lighthouse: The Beacon of Kraft Heinz’s Supply Chain
Lighthouse uses proprietary algorithms and data from various points in the supply chain to plan for product demand and suggest ways to manage disruptions. The software platform pools data from suppliers, factories, and distribution centers, providing tech-enabled recommendations to meet demand and avoid service disruptions. The ultimate goal is to create a self-driving, fully autonomous supply chain.
AI and Demand Fluctuations
Fluctuations in product demand are common in food manufacturing due to frequent changes in retailers’ order sizes. Kraft Heinz hopes that AI can help identify patterns and accurately address these demand shifts, thereby increasing sales. The company has already seen a $30 million increase in sales by applying AI and Lighthouse to its supply chain functions.
Collaboration with Microsoft for Streamlined Factories
Kraft Heinz has partnered with Microsoft to streamline its factories. The company uses Microsoft Azure’s cloud platform to consolidate all data and analytics. It also collaborated with Microsoft to develop KraftGPT, a generative-AI tool that serves as a comprehensive “Ask Me Anything” app for employees.
Towards a More Autonomous Workflow
Kraft Heinz’s investments in data collection have led to the retraining of manufacturing teams and the hiring of more data and automation engineers and robotics experts. The company views these technology investments as a “copilot,” aiding in making more informed business decisions across manufacturing, supply chain, and logistics. The Lighthouse system provides clear directions for handling demand disruptions, making it easier to onboard new talent.
